CX Business Case
Investing in customer centricity (Customer Experience, CX) is not just about making customers smile – it is also good business! Research and practical experience show that companies with a high level of customer satisfaction and loyalty simply achieve better financial results. Unfortunately, many management teams still fail to recognize this.
Why investing in CX?
Companies with a strong CX focus:
- Experience higher customer loyalty – which reduces churn and therefore the need for costly customer acquisition.
- Increase Customer Lifetime Value (CLV) through upselling, cross-selling, and longer customer relationships.
- Gain more recommendations (NPS) from loyal customers, resulting in more new customers at much lower acquisition costs.
- Experience fewer customer complaints, less administrative workload, and lower customer service costs.
We help you identify and prioritize the CX initiatives that deliver the strongest financial impact, based on your customer data and current internal processes.
Cases: The financial impact of increased loyalty
Churn reduction among subscription customers
A streaming service with 100,000 customers and a monthly subscription fee of € 15.
If CX initiatives reduce churn from 12% to 9%, the calculation looks like this:
Annual savings: € 540,000
NPS improvement – what does a 1% increase mean for revenue?
Imagine an insurance company with 250,000 customers and an average annual policy value of € 670, € 815, and € 940 for detractors, passives, and promoters respectively.
The calculation would look like this:
What would it look like if we convert 1% of Detractors to Passives, and 1% of Passives to Promoters?
By moving 1% of customers from Detractors to Passives, this would result in an annual revenue increase of € 362,500.
By moving 1% of customers from Passives to Promoters, this would generate an additional annual revenue increase of € 312,500.
Want to learn more about the financial value of loyalty development?
If you feel inspired and would like to read more, download our white paper “Show Me the Money” below. Here we present arguments and even more cases that clearly demonstrate the financial impact of increased customer loyalty.
Ready for the next step?
Do you want to take your work with customer loyalty further? Do you need inspiration or advice on the journey toward a more customer centric organization? At Loyalty Group, we can help you calculate your own CX business case and build the financial arguments for increased customer centricity.
Customer surveys
We have more than 30 years of experience in consulting based on detailed analyses... Read more.
Project scoping
Before your company embarks on its customer centricity project, you’ll need a... Read more.
Customer loyalty
Loyal customers have a direct top- and bottom-line impact, and investing in customer... Read more.
The Baseline Survey
Our Baseline Survey provides a snapshot of your current customer loyalty landscape... Read more.
Customer Centricity Maturity Assessment
What is keeping your employees from engaging fully in customer centricity? Employees... Read more.
Customer Journey Mapping
Expand your understanding of your customer’s journey and curate the best customer... Read more.
White paper
Show Me the Money
This white paper highlights the financial effect that comes with increased customer loyalty. After reading it, you’ll be equipped with arguments for stronger customer loyalty, a larger budget share, and increased customer acquisition to bring to the management table.
You will also be able to understand and perform the calculations that clearly demonstrate how customer focus pays off!
Fill out the form to receive a link to our inspirational material.
Please note: The contents of our white papers may not be republished without Loyalty Group’s permission.
